From being a retail and trading hub, Delhi is now an important centre of modern business. In its 100th year, a look at the business growth in the Capital.
Delhi completes its centenary as the capital of modern India in December 2011. However, Delhi has always served as the financial capital for most empires including the Mughal Empire.
Earlier, the core of the city lay in the northern parts: Chandini Chowk, Kashmere Gate and Civil Lines flourishing with trade and commerce. The small villages and hamlets in the southern part of the city had a motley group of communities living in them: Jats, Brahmins, Christians, Muslims and Gujjars. They reared animals, engaged in agriculture and worked as labourers in Shahjahanabad, the city established by Shah Jahan. Chandini Chowk, was also established by Shah Jahan. Today it is Asia’s largest wholesale market but during Shah Jahan’s reign it was a market planned especially for his daughter.
Food has always been a focal point for the city, and many believe the modern day Indian food industry originated in Delhi with eateries like Karim’s , which serves authentic Mughalai food. Haji Zahiruddin, founder of Karim’s belonged to a family whose bloodline extends back to the chefs who prepared feasts in the courts of Mughal emperors. Haji Karimuddin, the grandfather of the present owner established his shop in the same place where his descendants now prepare their family recipes. The recipes are still a secret.
Another famous food joint is Parantha Wali Gali. This Gali got its name in 1911. Of the 20 parantha shops in the late 1960s (all belonging to the same family), only three remain.
In the late 1980s many of them closed shop and moved out, though today this place is experiencing a revival and some shops are being run by the sixth generation of the same family. This food joint is the essence of the capital. The parantha served here can give competition to any major food chain throughout the country.
Khan Chacha is also one of the famous eateries of New Delhi. Located in Khan Market this is one of the food outlets that attracts tourists and residents.
Mumbai vs. Delhi
K.L Kaul, 84, retired as a scientist from Indian agricultural research, has been living in the city for more than 60 years. He describes Delhi as the ‘city of Babus and bicycles’, He also added that people usually migrated from other states and their only motive was to earn money and send to their families. They didn’t have any business perspectives.
Mrs Kavita Singh, who is a government school teacher specializing in History feels that no industry can be situated in the capital city – she cites Washington D.C as an example and says this applies to New Delhi too.
Although, it was not that Delhi hadn’t tried to establish itself as a commercial hub. The Escorts group, an engineering company which is one of the leading manufacturers of India tried to establish itself in Faridabad. But again, the main problem was the power shortage and industries cannot run without power. Eventually, the Escorts group had to shift.
Mrs Singh says that the one thing that doesn’t work for Delhi is that it doesn’t have sea ports. Sea is the cheapest way to transport. And if the transportation cost rises, it is difficult to compete in the world market. There are a lot of corporate offices in New Delhi but no big industry can be erected in the capital. This works in the favour of Mumbai, Kolkata and Gujarat.
GROWING REAL ESTATE HUB
One of the important businesses now in the city is real estate. A classic example would be DLF, where in last two decades farmland has given way to urban development. K.P Singh, the head of Delhi’s DLF group has transformed fragmented holdings of agricultural land into a modern metropolis. Raghuvendra Singh, who is K.P Singh’s father-in-law, started DLF in 1946 before partition. Now it is a thriving business in many other parts of the country as well.
Real estate is unofficially also known as the business of ‘Jats’ in Delhi.
Occupationally, since most refugees in Delhi came from the urban areas of West Pakistan, they moved towards trade and commerce. In many parts of Delhi, shops and businesses were taken over by such refugees. About 90 per cent of the shops in Chandni Chowk's Cloth Market, for example, originally belonged to the old residents of Delhi but over time Punjabi refugees took over the bulk of the business, with a mere 10 per cent eventually remaining in the control of the old merchants. In fact, this is the primary reason why Delhi, post-independence, became a big retail market city.
K.L Kaul also adds that the refugees who entered Delhi after the partition have only opened shops in places like Khan Market and Chandini Chowk. Those shops are still present in those areas but they have been unable to evolve into something huge.
Rise of modern business
If we talk about modern business environment which includes the IT, healthcare and service sector, Delhi has scored big time. All the upcoming IT companies are establishing their offices in Gurgaon.
The call centre culture was first started in Gurgaon and then it spread to other parts of the country. This also gave an opportunity to the less educated to work and gain experience.
Coaching centres have changed the face of this city. They started from one room in the owner’s home and now they are converted into a franchise. The most important example being Akash Institute and P.T. Sachdeva, they are famous throughout the country.
Though Mumbai has the benefit of Stock Exchange and Sea Ports, Delhi on the other hand is giving rise to new modern businesses which is changing the country and is putting India on the world map.